Monday, April 25, 2011

Chinese Truck Drivers End Shipping Disruption

Shanghai Back In Business
Shipping News Feature

CHINA –Strikes undertaken by Chinese truck drivers in Shanghai are reported to have been wound down on Sunday after the local government ordered container shipping and freight distribution centres to cancel or reduce fees for unloading containers, road tolls, and night-time loading.

Local observers report that the waiting lines of vehicles are now moving and logistic services in the city, one of China’s major freight hubs, are returning to normal.

The strikes, which began on Wednesday last week, were in response to rising costs that are being experienced by the country’s freight sector due to escalating inflation, pushing many truck drivers earnings down substantially.

The rapid reaction by the Chinese government is seen as a further sign of how concerned the ruling Communist party is with the economic situation, with inflation reaching 5.4 percent in March, almost the highest level in the last three years.

However, the underlying problems caused by increasing inflation, as well as the alleged corruption amongst freight forwarders seeking to add additional charges to truckers, are largely unresolved and means that it is entirely possible that we shall see renewed industrial action within China’s logistic industry in the future.